Fidelity Bitcoin ETF Sells $257 Million Worth of BTC: What’s Happening?

According to Lookonchain data from Jan. 10, Bitcoin and Ethereum ETFs experienced significant outflows, reflecting cautious investor sentiment.

Bitcoin ETFs saw a net outflow of 2,152 BTC (approximately $201.21 million), with Fidelity contributing to this with an outflow of 2,752 BTC ($257.26 million). Despite this, Fidelity continues to hold a substantial 205,488 BTC valued at $19.21 billion.

Related

Similarly, Ethereum ETFs had a net outflow of 45,684 ETH ($148.11 million), driven mainly by Fidelity, which accounted for 44,998 ETH ($145.88 million).

Fidelity’s Ethereum holdings now stand at 415,503 ETH, valued at $1.35 billion. These movements suggest a recalibration of holdings, possibly influenced by market conditions or strategic rebalancing as investors navigate early 2025 trends.

As covered by U.Today, Fidelity has demonstrated its dominance in the Bitcoin ETF space, surpassing BlackRock in weekly net inflows.

BlackRock outshone by Fidelity in spot Bitcoin ETF

This development follows a challenging period for BlackRock, which experienced two substantial Bitcoin outflows in December — the largest since the ETF’s inception.

Fidelity’s aggressive accumulation highlights its commitment to strengthening its position in the crypto ETF market, signaling growing institutional interest and competition in this rapidly evolving sector.

Top ETF analyst Eric Balchunas from Bloomberg offered a balanced perspective on the recent substantial outflows from Bitcoin ETFs. While acknowledging the historical magnitude of the pullbacks, Balchunas viewed them as natural and long overdue after a period of consistent growth.

He suggested that Bitcoin ETFs are unlikely to maintain their previous pace of expansion indefinitely, emphasizing that the withdrawals, while surprising to some, are more indicative of a market shift than a reversal.

Balchunas likened the situation to a “breather” in a long journey, a normal pause in an otherwise forward-moving trajectory, reinforcing the resilience of the Bitcoin ETF market despite temporary setbacks.